The unadjusted T-accounts of Byford Systems at December 31, 2014, and the related yearend adjustment data are given below.

Adjustment data at December 31, 2014, include the following:
a. Of the $7,500 balance of Unearned Service Revenue at the beginning of the year, all of it except $500 was earned during the year.
b. Supplies still unused at year end, $3,000.
c. Amortization for the year, $13,000.
d. Accrued salary expense, $4,000.
e. Accrued service revenue, $5,500.
Required
1. Write the account data in the Trial Balance columns of a work sheet, and complete the work sheet. Identify each adjusting entry by the letter corresponding to the data given.
2. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format.
3. Journalize the adjusting and closing entries. Include explanations.
4. Did Byford Systems have a profitable year or a bad year during 2014? Give the reason for your answer.

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Accounts Receivable Supplies Cash 13,500 54,000 Bal. Bal. 7,500 Bal. Accounts Payable Bal. 9,000 Equipment Accumulated Amortization-Equipment 148,500 Bal. 54,000 Bal, Note Payable, Long-term Salary Payable Unearned Service Revenue Bal. 7,500 Bal. 90,000 T. Byford, Capital T. Byford, Withdrawals 93,000 Service Revenue Bal. 223,500 Bal. 54,000 Bal. Rent Expense Salary Expense Supplies Expense 79,500 22,500 Bal. Bal. Amortization Expense-Equipment Interest Expense Insurance Expense Bal. 9,000 Bal. 10,500